FinCEN Issues Final Rules on Property Transfers and Asset Advisors

What You Need to Know About the New Rules

The Financial Crimes Enforcement Network (FinCEN) has issued final rules that will require certain individuals and businesses to report information about property transfers and assets. The rules are designed to help combat money laundering and other financial crimes.

Who Is Affected by the New Rules?

The new rules apply to the following individuals and businesses:

• Title insurance companies
• Escrow companies
• Closing agents
• Real estate brokers
• Asset advisors

What Information Must Be Reported?

The new rules require these individuals and businesses to report the following information:

• The identity of the buyer and seller of the property
• The purchase price of the property
• The date of the transaction
• The address of the property
• The source of the funds used to purchase the property

When Must the Information Be Reported?

The information must be reported within 15 days of the transaction.

How Can I Comply with the New Rules?

To comply with the new rules, you should:

• Develop a system for collecting the required information
• Train your employees on the new rules
• File the required reports with FinCEN

What Are the Penalties for Non-Compliance?

Failure to comply with the new rules could result in civil penalties of up to $50,000 per violation.

Conclusion

The new FinCEN rules are a significant development in the fight against money laundering and other financial crimes. By requiring certain individuals and businesses to report information about property transfers and assets, FinCEN is making it more difficult for criminals to hide their illicit gains.